India’s Government Relaxes Labeling Norms for Retailers

Single-brand retailers such as Ikea, Fabindia, Decathlon, H&M, Marks and Spencer, will now be exempt from marking the maximum retail price on their products. India’s consumer affairs ministry has relaxed labeling norms for the next one year and has laid down conditions for an alternative method of displaying prices.

A government directive says that retail sale prices of the products in a store will have to be displayed on labels fixed on racks. Additionally, the bar codes on prepackaged items for sale will need to display the retail sale prices when the items are scanned. Retail prices should be available on the company website. A catalogue of retail prices should also be available at each single-brand retail store. The Economic Times reports that the new order also specifies that once a packaged product is imported or packaged within the country, its retail sale price shall not be escalated upwards during its life cycle.

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“Removing the ‘maximum retail price’ display requirement on labels for packaged products is a positive step by the government towards establishing modern retail practices,” said Patrik Antoni, deputy country manager of Ikea India. “This will allow a more integrated way to communicate price in a multichannel environment.”

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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